Incline Village Doctor Sentenced To 15 Months in Prison for Tax Evasion
Reno, Nev. - United States Attorney Daniel G. Bogden and Assistant Attorney General for the United States Department of Justice Tax Division Eileen J. O'Connor announced that ELLIOTT SCHMERLER, a resident of Incline Village, Nevada, was sentenced today in federal court in Reno to 15 months in prison and a $15,000 fine for his guilty plea to tax evasion for the year 1995. The sentence was handed down in Reno by U.S. District Court Judge Edward C. Reed, Jr.
According to the court records, from 1994 through 1998, SCHMERLER used his medical practice, Lakeview Medical Associates, and a Bahamian corporation he controlled, to pay more than $500,000 in personal expenses, which he did not report as income on his tax returns. As a result, the defendant failed to pay the Internal Revenue Service more than $156,000 in individual income taxes. In addition, during 1997 and 1998, DR. SCHMERLER failed to pay the Internal Revenue Service more than $26,000 in federal employment taxes, consisting of income, social security, and medicare taxes withheld from employees' salaries and related employer payroll and unemployment taxes.
DR. SCHMERLER was also ordered to serve three years of supervised release following his release from custody, and must work with the IRS to repay his tax debts.
DR. SCHMERLER will remain free on a personal recognizance bond, and was permitted to self-surrender to the designated federal correctional facility by January 6, 2003.
Special Agents with the Internal Revenue Service conducted the investigation. U.S. Department of Justice Tax Division Trial Attorney Caryn D. Mark handled the prosecution.